Question of the Day: What types of scams have quadrupled in dollars lost since 2016?

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May 10, 2021
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Question of the Day, Financial Scams

Answer: Romance Scams

Questions:

  • Why do you think romance scams have grown so rapidly in recent years? 
  • What are warning signs that something could be a scam?
  • How might scammers be using technology to create romance scams? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

 

Behind the numbers (Federal Trade Commission):

"They say love hurts. With romance scams that’s doubly true – hearts are broken and wallets are emptied. For three years running, people have reported losing more money on romance scams than on any other fraud type identified in Sentinel. In 2020, reported losses to romance scams reached a record $304 million, up about 50% from 2019. For an individual, that meant a median dollar loss of $2,500.

It is reasonable to wonder: what happened in 2020 to make these dollars losses continue to spike? An obvious reason may be the pandemic limiting our ability to meet in person. But outside the pandemic, the share of people who have ever used an online dating site or app has also been rising. And romance scammers are primed to take advantage."

 

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Want more activities related to scams? Check out the Financial Pitfalls unit.

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About the Author

Mason Butts

After graduating from UCLA with a Master's in Education, Mason spent 5 years as a science educator in a South Los Angeles public high school. He is committed to supporting the holistic growth of all students and empowering them to live a life of relational, academic, and financial success. Now settled in the Bay Area, Mason enjoys facilitating professional developments and partnering with educators as they prepare students for a bright financial future. When Mason is not building curriculum or planning a training, he can be found cycling, trying new foods, and exploring the outdoors.